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Contact: Jason Golz
Ashton Partners
Tel: 415-293-4411
jason.golz@fdashtonpartners.com
PERICOM SEMICONDUCTOR REPORTS
FISCAL Q2 2008 FINANCIAL RESULTS
Posts Year-Over-Year Revenue Growth of 32%
And Net Income Growth of 95%
San Jose, Calif. - January 31, 2008 - Pericom Semiconductor Corporation (NASDAQ:
PSEM), a worldwide supplier of high-speed integrated circuits and frequency
control products, today announced results for its fiscal second quarter ended
December 29, 2007.
Quarterly Highlights
|X| Net revenues grew 6 percent sequentially and 32 percent
year-over-year to $40.7 million.
|X| Gross margin of 36.9 percent was up 50 basis points on a sequential
basis and up 230 basis points year-over-year.
|X| Net income grew 13 percent sequentially and 95 percent
year-over-year to $4.4 million.
Net revenues for the second quarter were $40.7 million, up 5.9 percent from the
$38.5 million reported in the first quarter, and up 32.0 percent from the $30.8
million reported in the comparable period last year. Gross margin was 36.9
percent, up from 36.4 percent last quarter, and up from 34.6 percent in the
comparable period last year. Net revenues for the six-month period ending
December 29, 2007 were $79.2 million, up 28.4 percent from the $61.7 million in
the prior year comparable period. Gross margin in the six-month period ending
December 29, 2007 was 36.7 percent, up from the 34.2 percent in the comparable
period last year.
NEWS RELEASE January 31, 2008
Operating expenses in the quarter were $10.1 million, up slightly from $9.9
million in the previous quarter and up from $9.0 million in the comparable
period last year. Operating expenses in the six-month period ending December 29,
2007 were $20.0 million, up from $18.7 million in the comparable period last
year. Stock-based compensation expense in the quarter was $650,000, up from
$508,000 in the previous quarter and up from $560,000 in the comparable period
last year. Stock based compensation expense for the six-month period ended
December 29, 2007 was $1.2 million, up from $1.1 million in the comparable prior
year period.
Net income in the quarter was $4.4 million, or $0.16 per diluted share, compared
with net income of $3.9 million, or $0.15 per diluted share in the first quarter
and net income of $2.3 million, or $0.08 per diluted share, in the same period a
year ago. Net income in the six-month period ending December 29, 2007 was $8.3
million, or $0.31 per diluted share, up from $3.9 million, or $0.15 per diluted
share in the comparable prior year period.
"We delivered revenue at the high-end of our guidance, which was derived by
demand for our high-speed serial protocol solutions for digital video, ultra
mobility and high performance PCs and servers," said Alex, Hui, President and
Chief Executive Officer. "Operating income increased 21.8% sequentially as a
result of higher revenue, expanding margin and control of expenses.
"Our recent track record highlights the success of our previously stated growth
initiatives. We believe our business is well positioned to continue capturing
further share in high growth segments, within consumer, communications and
computer vertical markets," concluded Hui.
New Products
Expanding our ultra mobility solution, Pericom launched two USB switches that
respectively upgrade hand-held devices to support USB High Speed capability and
combine USB High Speed and audio signals for new cell phones and MP3 players.
Expanding our solution for high-speed serial protocol, Pericom introduced a
GreenPacket (TM) PCIe family of three packet switches available in industry's
smallest BGA footprint and lowest power consumption for size and power sensitive
applications in notebook PCs, video surveillance, networking and embedded
markets.
3545 North First Street San Jose, CA 95134 (408) 435-0800
NEWS RELEASE January 31, 2008
Continuing our specialized timing solution, Pericom sampled a new low-power, low
jitter series of spread-spectrum crystal oscillator modules in compact package
for portable network applications, as well as a spread-spectrum clock generator
for EMI-reduced video surveillance applications.
Share Repurchase Update
In April 2007, Pericom's board of directors authorized a share repurchase
program to buy up to 2.0 million shares of its common stock. During the quarter,
the Company spent approximately $280,000 repurchasing 17,334 shares of Pericom
common stock at an average price of $16.14. The company has purchased a total of
approximately 773,000 shares under this program at an average price of $10.82.
Fiscal Q3 Outlook
The following statements are based on current expectations. These statements are
forward looking, and actual results may differ materially.
o Revenues in the third fiscal quarter are expected to be in the range
of $38.5 million to $40.7 million.
o Gross margins are expected to be in the 36 to 37 percent range.
Margins are influenced by the product mix of turns business and
sales, if any, of previously reserved inventory.
o Operating expenses are expected to be in the range of $9.8 to $10.0
million, which include stock-based compensation expense of
approximately $0.6 million.
o Other income is expected to be approximately $1.4 million,
consisting primarily of interest income.
o The effective tax rate is expected to be approximately 33 percent.
Conference Call
The press release will be followed by a conference call beginning at 1:30 p.m.
Pacific time. To listen to the call, dial (877) 548-7912 and reference
"Pericom".
3545 North First Street San Jose, CA 95134 (408) 435-0800
NEWS RELEASE January 31, 2008
A taped replay of the conference call will be made available for two days. To
listen to the replay, dial (888) 203-1112 and reference conference number
5499455. The Pericom financial results conference call will be available via a
live webcast on the investor relations section of the web site at
http://www.pericom.com. Access the web site 15 minutes prior to the start of the
call to download and install any necessary audio software. An archived webcast
replay will be available on the web site for approximately 90 days.
About Pericom
Pericom Semiconductor Corporation (NASDAQ: PSEM) enables serial connectivity
with the industry's most complete solutions for the computing, communications
and consumer market segments. Pericom's analog, digital and mixed-signal
integrated circuits, along with its SaRonix-eCERA frequency control products are
essential in the timing, switching, bridging and conditioning of high-speed
signals required by today's ever-increasing speed and bandwidth demanding
applications. Company headquarters is in San Jose, Calif., with design centers
and technical sales and support offices globally. http://www.pericom.com
This press release contains forward-looking statements as defined under The
Securities Litigation Reform Act of 1995. Forward-looking statements in this
release include the statements under the captions `Fiscal Q3 Outlook', which
regard the anticipated revenues, gross margin, operating expenses, other income
and tax rate in the third fiscal quarter, and statements regarding Pericom being
well positioned to continue capturing further share in high growth segments,
within consumer, communications and computer vertical markets. The Company's
actual results could differ materially from what is set forth in such
forward-looking statements due to a variety of risk factors, including softness
in demand for our products, price erosion for certain of our products,
unexpected difficulties in developing new products, customer decisions to reduce
inventory, economic or financial difficulties experienced by our customers, or
technological and market changes. All forward-looking statements included in
this document are made as of the date hereof, based on information available to
the Company as of the date hereof, and Pericom assumes no obligation to update
any forward-looking statements. Parties receiving this release are encouraged to
review our annual report on Form 10-K for the year ended June 30, 2007, and our
quarterly report on Form 10-Q/A for the quarter ended September 29, 2007, and,
in particular, the risk factors sections of those filings.
3545 North First Street San Jose, CA 95134 (408) 435-0800
Pericom Semiconductor Corporation
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
Dec 29 Sep 29 Dec 30 Dec 29 Dec 30
2007 2007 2006 2007 2006
---- ---- ---- ---- ----
Net revenues $ 40,726 $ 38,468 $ 30,842 $ 79,194 $ 61,668
Cost of revenues 25,694 24,467 20,176 50,161 40,570
-------- -------- -------- -------- --------
Gross profit 15,032 14,001 10,666 29,033 21,098
Operating expenses:
Research and development 4,278 4,082 4,040 8,360 7,982
Selling, general and administrative 5,786 5,839 4,919 11,625 10,714
-------- -------- -------- -------- --------
Total 10,064 9,921 8,959 19,985 18,696
Income from operations 4,968 4,080 1,707 9,048 2,402
Interest and other income 1,622 1,370 1,151 2,992 2,431
Other than temporary decline in value of investment 0 0 0 0 (1)
-------- -------- -------- -------- --------
Income before income taxes 6,590 5,450 2,858 12,040 4,832
Income tax expense 2,344 1,691 691 4,035 1,311
Minority interest in (income) loss in consolidated subsidiary (19) 3 (21) (16) (30)
Equity in income (loss) of investees 169 121 110 290 390
-------- -------- -------- -------- --------
Net income $ 4,396 $ 3,883 $ 2,256 $ 8,279 $ 3,881
======== ======== ======== ======== ========
Basic income per share $ 0.17 $ 0.15 $ 0.09 $ 0.32 $ 0.15
======== ======== ======== ======== ========
Diluted income per share $ 0.16 $ 0.15 $ 0.08 $ 0.31 $ 0.15
======== ======== ======== ======== ========
Shares used in computing basic income
per share 25,888 25,745 26,113 25,817 26,122
======== ======== ======== ======== ========
Shares used in computing diluted income
per share 26,959 26,379 26,783 26,669 26,737
======== ======== ======== ======== ========
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3545 North First Street San Jose, CA 95134 (408) 435-0800
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Dec 29,2007 Jun 30, 2007
----------- ------------
(unaudited)
-----------
Assets
Current Assets:
Cash & cash equivalents $ 8,664 $ 29,173
Restricted cash --
Short-term investments 105,828 42,268
Accounts receivable 25,459 19,621
Inventories 20,461 14,787
Prepaid expenses and other current assets 866 669
Deferred income taxes 3,666 4,280
-------- --------
Total current assets 164,944 110,798
Property and equipment, net 26,874 23,940
Investments in unconsolidated affiliates 9,963 9,619
Deferred income taxes-non current 5,522 5,572
Long-term investment in marketable securities 17,881 59,574
Goodwill 1,325 1,348
Intangible assets 1,222 1,311
Other assets 2,922 2,073
-------- --------
Total assets $230,653 $214,235
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 16,153 $ 12,553
Accrued liabilities 9,786 8,718
Short-term and current portion of long-term debt 0 392
-------- --------
Total current liabilities 25,939 21,663
Long-term debt 0 388
Deferred tax liabilities 797 797
Other long-term liabilities 0 3
Minority interest in consolidated subsidiaries 1,018 906
-------- --------
Total liabilities 27,754 23,757
Shareholders' equity:
Common stock 138,548 135,887
Retained earnings and other 64,351 54,591
-------- --------
Total shareholders' equity 202,899 190,478
-------- --------
Total liabilities and shareholders' equity $230,653 $214,235
======== ========
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3545 North First Street San Jose, CA 95134 (408) 435-0800